One Explanation for Why Product Prices Adjust Slowly Is That

question 7

Multiple Choice

One explanation for why product prices adjust slowly is that

• A) most markets are perfectly competitive.
• B) businesses incur menu costs when they change prices.
• C) markets clear continuously, making price adjustments difficult.
• D) if wages adjust rapidly, prices take a while to catch up.
• E) most markets are subject to government price control laws.

---

Definitions:

Drawings

Artistic representations made with pencils, pens, crayons, or other tools on a surface, capturing scenes, ideas, or concepts.

Ages

Different stages of human life categorized by chronological years.

Left Handedness

Refers to the preference of using the left hand for tasks such as writing and eating, typically related to brain hemisphere dominance.

Prevalent

Widely existing or occurring, often dominating in a particular area or field.